AP314: Payment Processing. Instructor Led Training

AP314: Payment Processing Instructor Led Training

Lesson 1: Understanding Payment Processing Introduction Welcome Welcome to Cardinal Training! This training provides employees with the skills and information necessary to use Cardinal. It is not intended to replace existing Commonwealth and/or agency policies. By now, you have completed all prerequisite courses for this course and discovered the different functional areas and modules included in Cardinal. In this course, we will walk you through payment processes in Cardinal. Click Next to Continue 2

Lesson 1: Understanding Payment Processing Introduction Introduction In the Introduction to Cardinal course, you learned that the Accounts Payable functional area of Cardinal is composed of two modules: Accounts Payable The Accounts Payable (AP) module automates invoice and payment processing to deliver timely and accurate payment for goods and services. Expenses The Expenses module enables the creation of payments to employees for non-salary related items (i.e. travel & business expense reimbursements). Note: The Expenses module is often referred to as Travel and Expenses. Click Next to Continue 3

Lesson 1: Understanding Payment Processing Introduction Objectives After completing this course, you will be able to: Define key payment processing terms Describe key payment processing concepts Describe the overall payment process and the roles involved in it Explain how payment processing integrates with the other Cardinal modules and external systems Describe the Treasury pay cycles List the steps in a pay cycle Use the Pay Cycle Manager to run payment processing Update the payment selection date in a pay cycle Identify and resolve payment selection exceptions Describe the files created by the payment process Describe the purpose of express payments and manual payments Create an express payment for petty cash Explain how to record a manual payment on the voucher Cancel payments Reconcile petty cash bank statements Describe key reports and online inquiries Click Next to Continue 4

Lesson 1: Understanding Payment Processing Introduction Agenda Today, we will cover the following topics: Lesson 1: Understanding Payment Processing Lesson 2: Creating Payments through Regular pay cycle Lesson 3: Creating Special Payments Lesson 4: Managing Payments Lesson 5: Payment Reports and Online Inquiries Lesson 6: Payment Processing Hands-On Practice Click Next to Continue 5

Lesson 1: Understanding Payment Processing Introduction Lesson Topics In this lesson, you will learn about the following topics: Key Terms Key Concepts Process and Roles Integration and Interfaces Click Next to Continue 6

Lesson 1: Understanding Payment Processing Topic 1: Key Terms Key Terms Payment: A record created in Cardinal Accounts Payable (AP) that causes a payment to be generated to a vendor or other payee. In Accounts Payable, payments are generally created by Accounts Payable vouchers that represent invoices submitted by vendors. Payments may also be generated for other reasons, such as for Travel and Expenses employee reimbursements or revenue refunds. Payments may be generated in different forms, like checks or electronic debits. During the payment process, accounting entries to the General Ledger (GL) are also generated to record payment posting. Payment Hold: An option that will cause a payment not to be created for a voucher even if the voucher would otherwise be selected for payment. A payment hold can be placed on a voucher or on a vendor when payment should be held on all vouchers for that vendor. Click Next to Continue 7

Lesson 1: Understanding Payment Processing Topic 1: Key Terms Key Terms Payment Offset: A case where the vendor should not be paid the full amount of the voucher. In these cases, the payment is split between the amount due to the vendor, and the amount due to a third party (that is, the payment offset ). There are two types of offsets: o A tax lien, garnishment, or similar circumstance exists where the agency is responsible for processing the third party offset amount. In these cases, the offset must be manually created in Accounts Payable and tracked in an offline system. o A Comptroller s Debt Setoff (CDS). All CDS offsets are maintained by the Department of Taxation rather than the agency. In these cases, the offset is automatically identified and processed by the Department of Taxation. Click Next to Continue 8

Lesson 1: Understanding Payment Processing Topic 1: Key Terms Key Terms (Continued) Pay Cycle: A name given to the selection and creation of payments and their output processes for scheduled vouchers and expense transactions. There may be different pay cycles for requests meeting different criteria such as payment method. The Treasury pay cycles will be run in the nightly batch. Payment Selection Process: The step in the pay cycle where vouchers and other items that are due for payment are selected for payment processing. Most payment selection is automatic based on payment configuration, but payments may also be selected manually. Click Next to Continue 9

Lesson 1: Understanding Payment Processing Topic 1: Key Terms Key Terms (Continued) Payment Creation Process: The step in the pay cycle that processes the requests selected for payment by the Payment Selection process so they can be input to the payment output processes. Generally, vouchers to the same vendor with the same due date are combined into one payment. This process creates one payment from several vouchers to the same vendor with the same payment due date. This causes the vendor to receive a single payment, but it can be overridden for a voucher if the Separate Payment checkbox was selected on the voucher. Payments are not combined by Treasury if the Separate Payment checkbox is checked. Payment Output Processes: The processes that run as part of the pay cycle that use the results of the Payment Creation process to create output files for actual payments. These files, for example, include EDI payment files, Warrant check files, petty cash checks, and positive payment files. Click Next to Continue 10

Lesson 1: Understanding Payment Processing Topic 1: Key Terms Key Terms (Continued) Payment Post Process: The batch process that runs after the Payment Output processes to create accounting entries in AP that will be used by the Journal Generator to generate GL journals reflecting the payment. Express Payment: An alternative to the regular pay cycle processing that allows payments to be created on demand. Individual petty cash vouchers can be paid by petty cash processors by creating express payments. Click Next to Continue 11

Lesson 1: Understanding Payment Processing Topic 2: Key Concepts Key Concepts Some key concepts in payment processing include: Expense Reports and Cash Advances o Expense reimbursements and cash advances for employees are managed through the Travel and Expenses module in Cardinal. Payments for the expense transactions are created in the Accounts Payable pay cycles. Payment Offset Processing Liens and Garnishments o Remember that payment offset processing for items such as tax liens or garnishments are entered manually within Accounts Payable. o When a vendor is subject to this type of a payment offset, a location is created in the vendor record that includes a payment hold and the code RR to indicate that special review by the Voucher Processor is needed. (Note that a vendor location is not a physical address, and instead includes rules for doing business with the vendor.) o o The LIEN location will be set as the default. This causes the vendor to appear on the Vendor with Payment Hold and Related Unpaid Vouchers report. This in turn alerts the Voucher Processor to manually update the voucher payment data so that the appropriate tax lien or garnishment amount is deducted from the payment and is instead paid to the appropriate party. The agency also maintains an offline agency-specific tracking system to track the lien or garnishment balances. Once the offset has been applied, the Voucher Processor Maintenance must ensure the vendor location on the voucher is set to the correct location. This location change removes the payment hold if it exists. Click Next to Continue 12

Lesson 1: Understanding Payment Processing Topic 2: Key Concepts Key Concepts (Continued) Payment Offset Processing Withholding o In Cardinal, a withholding (1099) Vendor is a vendor for which amounts paid must be reported to the IRS on a 1099 form and/or amounts withheld for taxes. This term is used because the 1099 processes may also involve withholding amounts from vendor payments for delinquent taxes. o The withholding information for 1099-reportable vendors is maintained with the vendor s location as well. The values on the vendor s location also trigger 1099 reporting for applicable payments. For 1099 vendors, the Withholding checkbox is auto-populated and should not be changed. o Ultimately, reportability will be determined by the accounts used on the voucher. If an account used is nonreportable, then the amount from that account will not be reported. Click Next to Continue 13

Lesson 1: Understanding Payment Processing Topic 2: Key Concepts Key Concepts (Continued) Payment Offset Processing Comptroller s Debt Setoff (CDS) o A vendor s payment may also be subject to the Comptroller s Debt Setoff (CDS) maintained by the Department of Taxation. This process is automated, and follows these steps: In Cardinal, the CDS extract process runs nightly, selecting vouchers for payment processing based on the normal payment selection criteria as well as CDS bypass criteria. The extract process creates files with the resulting payment information which is then sent to the Department of Taxation. The Department of Taxation processes the files by looking for matches between the vendors in the file and vendors subject to CDS. When the Department of Taxation finds a matching vendor, it processes the payment data in the file, indicating the amount to be offset. The Department of Taxation then sends the updated files back to Cardinal. Once the files are uploaded, the applicable vouchers are automatically updated with a second remit to a dummy CDS vendor for the amount of the offset. The amount to the original vendor is updated accordingly and the second remit is marked as a manual payment. A CDS Informational Matches report is produced as an output of the CDS upload process. The report shows vouchers that would have had a CDS offset if they were eligible for the process. This criteria is defined on the CDS Offset Bypass configuration page. Click Next to Continue 14

Lesson 1: Understanding Payment Processing Topic 2: Key Concepts Key Concepts (Continued) Payment Offset Processing Comptroller s Debt Setoff (CDS) (Continued) o Some types of payments, such as petty cash payments, are excluded from the CDS processing and are not included in the files to the Department of Taxation based on the CDS Offset Bypass configuration. o Since this is an automated process, there is no action taken by the voucher/payment processors. However, the offsets are visible in the voucher records, and voucher /payment processors should be aware of them so they can respond to vendor inquiries. Click Next to Continue 15

Lesson 1: Understanding Payment Processing Topic 2: Key Concepts Key Concepts (Continued) Petty Cash o Petty cash payments are created manually by the petty cash processor as express payments. Petty cash processors should only create payments for their assigned petty cash accounts. o In Cardinal, regular vouchers are created as needed to provide reimbursements for petty cash. The Unreimbursed/Reimbursed Petty Cash Vouchers report is run to identify vouchers requiring reimbursements, and a regular voucher is created to replenish the petty cash account(s) accordingly. The ID of the voucher created for the petty cash replenishment is noted in the Payment Note field, accessed through the Payment Comments link on the Payments tab, using the standard format, REIMB followed by the voucher ID. Click Next to Continue 16

Lesson 1: Understanding Payment Processing Topic 2: Key Concepts Key Concepts (Continued) Centralized Vendor Database o All Cardinal users share the same vendor database. For procurement vendors, eva is the primary data source and the Department of Minority Business Enterprise (DMBE) system updates a vendor s Small, Women and Minority-owned (SWaM) data. When dealing with a familiar vendor, you may see additional information such as remit-to addresses that may be used by other users. Make sure you select the correct address for your voucher. o o In general, procurement vendor information should not be updated in Cardinal to avoid potential conflicts with the eva and DMBE sources. However, certain information, such as EDI banking information, can be updated in Cardinal by the Vendor Maintenance group. Non-procurement (or fiscal) vendors (payees such as Right of Way landowners and those receiving refunds) are created directly in Cardinal and are not eva vendors. Click Next to Continue 17

Lesson 1: Understanding Payment Processing Topic 3: Process and Roles Payment Processing In Accounts Payable, payment processing begins when voucher processing ends. Treasury payment processing in Cardinal is completed in the nightly batch and requires little attention. However, payment processors view pay cycle exceptions, cancel payments, and run reports and inquiries to obtain information about payments. Petty cash processors create express payments as required. 18

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Lesson 1: Understanding Payment Processing Topic 3: Process and Roles Key Payment Processing Roles Module Role Name Functional Description Accounts Payable Accounts Payable Batch Processor This role has access to: Run all AP batch processes including any custom and delivered processes and reports Accounts Payable Accounts Payable Accounts Payable Configurator Accounts Payable Manager This role has access to: Maintain AP configuration such as global payment messages on checks, conversation key words for vendor conversations, etc. This role has access to everything the Voucher Processor has. In addition, this role has access to: Delete and unpost vouchers Voucher mass maintenance Manually schedule payments Record manual payments 20

Lesson 1: Understanding Payment Processing Topic 3: Process and Roles Key Payment Processing Roles (Continued) Module Role Name Functional Description Accounts Payable Payment Processor This role has access to everything the Voucher Processor has. In addition, this role has access to: View pay cycle exceptions Cancel payments Accounts Payable Accounts Payable Petty Cash Processor Petty Cash Reconciler This role has access to: Run petty cash pay cycle Update payment selection criteria Resolve pay cycle exceptions Print petty cash checks Cancel payment View Accounting Entries This role has access to: Manually reconcile/unreconcile petty cash payments 21

Lesson 1: Understanding Payment Processing Topic 4: Integration and Interfaces Integration with General Ledger Accounts Payable integrates with the General Ledger through its payment functions. All payments create entries in the General Ledger. The payment creation process creates records of specific payments that will be processed by the payment output process to files such as EDI payment files. The payment post process uses this data to create entries in an Accounts Payable database table that are used by the Journal Generator process to create journal entries posted to the GL. 22

Lesson 1: Understanding Payment Processing Topic 4: Integration and Interfaces Integration with Travel and Expenses Cardinal uses the Travel and Expenses module to handle employee travel authorizations, cash advances, and expense reports. Though Travel and Expenses is a separate module, it uses the payment creation processes in Accounts Payable to generate payment files for cash advances and expense report reimbursements. The Travel and Expenses module processes items up to the pay cycle processing steps and then sends the records to AP to create the payment record and output files. Travel and Expenses then creates the accounting entries used by GL. 23

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Lesson 1: Understanding Payment Processing Topic 4: Integration and Interfaces Interfaces with Bank, VDOT RUMS, REDI Virginia, DOA SPCC, PPSMA, Department of Treasury and APA System Accounts Payable payment processing also interfaces with several external systems: Bank: AP sends bank systems positive pay files and EDI information. VDOT RUMS (VDOT Right of Way and Utility Management System): AP sends Right Of Way (ROW) payment information. REDI (Remittance EDI) Virginia: AP sends vendor EDI remittance information. DOA SPCC (Department of Accounts Small Purchase Charge Card) Utilization Database: AP sends payment data. PPSMA (Prompt Pay Statistics Monitoring Application): AP sends prompt payment. Department of Treasury: AP sends information on checks that require printing; disbursement files for reconciliation and due diligence. APA (Auditor of Public Accounts) Datapoint System: AP sends payment information. In addition to the above systems, Accounts Payable interfaces with several other external systems to perform functions related to vendor maintenance and voucher processing. These interfaces are detailed in the courses that focus on those functions. 25

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Lesson 1: Understanding Payment Processing Lesson Checkpoint Lesson Checkpoint Now is your opportunity to check your understanding of the course material. 27

Lesson 1: Understanding Payment Processing Lesson Checkpoint Lesson Checkpoint Answer the review questions below: 1) Who creates express payments and why? 2) Does the Payment Creation process create files that are sent to banks and treasury? 3) Where are CDS offsets processed? 4) Is Travel and Expenses completely separate from Accounts Payable? 5) Name a few external systems that AP payment processing interfaces to. 28

Lesson 1: Understanding Payment Processing Lesson Summary Lesson Summary In this lesson, you learned how to: Recognize key terms in the Accounts Payable module and explain their meaning. Discuss key concepts in the Accounts Payable module. Discuss the different processes in the Accounts Payable module. Discuss the ways that the Accounts Payable module integrates with other modules in Cardinal and interfaces with external systems. 29

Lesson 2: Creating Payments Through Regular Pay Cycles Introduction Lesson Objectives After completing this lesson, you will be able to: Describe the Treasury pay cycles List the steps in a pay cycle Use the Pay Cycle Manager to run payment processing Update the payment selection date in a pay cycle Identify and resolve payment selection exceptions Describe the files created by the payment process 30

Lesson 2: Creating Payments Through Regular Pay Cycles Introduction Lesson Topics In this lesson, you will learn about the following topics: Pay Cycle Processing Overview Running Pay Cycle Manager Updating Payment Selection Date Running Payment Selection and Payment Create Processes Locating and Resolving Payment Processing Exceptions Running Payment Output Processes Running Payment Post Process Files Created by Payment Process 31

Lesson 2: Creating Payments Through Regular Pay Cycles Topic 1: Pay Cycle Processing Overview Pay Cycle Processing Overview There are two nightly Treasury pay cycles that process Warrant and EDI payments for all agencies. The Payment Processor must review any exceptions that occur in these cycles. 32

Lesson 2: Creating Payments Through Regular Pay Cycles Topic 2: Running Pay Cycle Manager Pay Cycle Manager Page You use the Pay Cycle Manager page to initiate and monitor pay cycle processing. This page is available to the Accounts Payable Batch Processor who performs overnight payment processing for the Treasury bank accounts. You can navigate to this page through the following path: Main Menu > Accounts Payable > Payments > Pay Cycle Processing > Pay Cycle Manager You use the Pay Cycle Manager page to step through the processes in pay cycle processing. This page helps you perform the processes in the correct order, and provides links to view exceptions. 33

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Lesson 2: Creating Payments Through Regular Pay Cycles Topic 3: Updating Payment Selection Date Updating Payment Selection Date As you learned earlier, Cardinal can use different pay cycles for different groups of payments. Payment Selection is the first process to run in a pay cycle. The Payment Selection process selects vouchers and expense transactions for payment based on the payment selection criteria. Each pay cycle has different selection criteria so different transactions will be selected for payment in each cycle. In all pay cycles, the date criteria need to be updated manually each day before the pay cycles run. This causes the transactions that are scheduled for payment that day to be selected. This topic introduces you to the procedures for defining the date criteria for a pay cycle. Note: Other payment selection criteria can be changed as well, but this is done rarely and is not covered here. 35

Lesson 2: Creating Payments Through Regular Pay Cycles Topic 3: Updating Payment Selection Date Payment Selection Criteria Pages You use the Payment Selection Criteria pages to set up and control payment selection for a pay cycle. Each defined pay cycle has its own Payment Selection Criteria definitions. 36

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Lesson 2: Creating Payments Through Regular Pay Cycles Topic 3: Updating Payment Selection Date Updating Pay Cycle Date Criteria Updating pay cycle date criteria is done on the Payment Selection Criteria page. You can navigate to this page through the following path: Main Menu > Accounts Payable > Pay Cycle Processing > Payment Selection Criteria The steps for updating the date criteria are: In the Pay Cycle field of the Payment Selection Criteria Find an Existing Value page. Enter the ID of the pay cycle to be updated (TRCHK for the warrant pay cycle, or TREDI for the EDI pay cycle). Click the Search button. 38

Lesson 2: Creating Payments Through Regular Pay Cycles Topic 3: Updating Payment Selection Date Updating Pay Cycle Date Criteria (Continued) The Dates page is where you can change the date criteria. When the page appears, it will probably display the dates that were used in the last run of the payment cycle in the Pay From Date, Pay Through Date, and Payment Date fields. The dates in these fields control what transactions will be selected for payment. The Pay From Date should be a date far in the past (for example, 01/01/1900). This ensures any payments that might have been delayed (for example, because there was a payment hold) will be recognized for payment as soon as they are eligible. The Pay Through Date and Payment Date fields should contain the next business day for the warrant pay cycle (TRCHK). For the EDI pay cycle (TREDI), these dates should be two business days in the future. Ultimately, dates will be specified and payments will be created based on the COVA payment calendar. 39

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Lesson 2: Creating Payments Through Regular Pay Cycles Topic 3: Updating Payment Selection Date Updating Pay Cycle Date Criteria (Continued) There are other fields on the Dates page as well, though they do not often need to be changed manually. The Next Pay Through Date and Next Payment Date fields display the dates that are expected to be used for the next cycle. The Accounting Date is the accounting date that will be used for the payments and the Withholding Date is the date that will be used in the withholding transaction record for payments to withholding (1099) vendors. These days are automatically adjusted according to the criteria in the drop-down list fields below the dates. The Business Day Validation section includes fields for adjusting the dates automatically for weekends and holidays. The values in these fields should not be changed. 41

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Lesson 2: Creating Payments Through Regular Pay Cycles Topic 3: Updating Payment Selection Date Updating Pay Cycle Date Criteria (Continued) To update the pay cycle date criteria, click the Increment button in the middle of the page. This changes the Pay From Date, Pay Through Date, and Payment Date, as well as the Next dates, according to the increment in the fields to the left of the button. In the example shown here, the increment value is 1 Day(s), so clicking the Increment button advances the dates by one day. In the Business Day Validation section, the Use Holiday Calendar option will be selected, therefore this will be the next business day rather than the next calendar day. If you make a mistake when clicking the Increment button, you can click the Decrement to reverse the date change. You can also enter any of the dates manually if desired. After you Save the page, the new dates will be used in the next run of the pay cycle. Remember also that this only affects the pay cycle you selected. If you are responsible for other cycles, you must change the dates in those cycles separately. 43

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Lesson 2: Creating Payments Through Regular Pay Cycles Topic 4: Running Payment Selection and Payment Create Processes Payment Selection Process and Payment Creation Processes Two major processes of the pay cycle include: the Payment Selection process and the Payment Creation process. Payment Selection Process: This process selects the vouchers or expense transactions for payment, according to the selection criteria for the cycle as you learned in the previous topic. Payment Creation Process: This process creates records that will be used for generating payments by the Payment Output processes that follow later in the cycle. To do this, the Payment Creation process combines all selected items for a payee and handling code into a single payment for example, all vouchers for a particular vendor selected by the pay cycle. (Vouchers can be selected to be paid separately, but this is not common.) These processes are run nightly as part of the Treasury pay cycles. If errors occur in these processes, Cardinal generates exceptions, which can be reviewed and resolved in the next step. 45

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Lesson 2: Creating Payments Through Regular Pay Cycles Topic 5: Locating and Resolving Payment Processing Exceptions Payment Processing Exceptions Treasury pay cycle processing runs overnight. Each morning, the Payment Processor should check if any errors (exceptions) occurred in the previous night s run. Once corrected, they will automatically be resubmitted for processing in the next night s run. 47

Lesson 2: Creating Payments Through Regular Pay Cycles Topic 5: Locating and Resolving Payment Processing Exceptions Locating Payment Processing Exceptions Various Payment Cycle Exceptions pages can be found in the Pay Cycle Exceptions folder. You can navigate to this folder through the following path: Main Menu > Accounts Payable > Payments > Pay Cycle Exceptions Several different types of exceptions can occur. The menu lists each type separately. When you check a processing run for exceptions, you should check these types: Review Pay Cycle Errors: This page lists errors in the basic payment process for a payment, such as missing or corrupted data. Review Withholding Alert: This page lists errors in the withholding (1099) transaction process, for payments to withholding vendors. Pay Cycle SDN List Exceptions: This page lists errors related to financial sanctions, where the vendor is subject to these sanctions. 48

Lesson 2: Creating Payments Through Regular Pay Cycles Topic 5: Locating and Resolving Payment Processing Exceptions Displaying Exception Details Making a selection on the Pay Cycle Exceptions menu lets you display any exceptions of that type on a details page. An example of one of the details pages appears here. This page displays details to help resolve the exception, such as the record/field where the exception occurred, the specific error message text, etc. If more than one exception occurred, you can display the additional exceptions on subsequent rows. 49

Lesson 2: Creating Payments Through Regular Pay Cycles Topic 5: Locating and Resolving Payment Processing Exceptions Resolving Payment Processing Exceptions The steps for resolving payment processing exceptions depend on the specific exception. In some cases, you may be able to correct the voucher. In other cases, research may be required to resolve. Remember that after you make the necessary corrections, the item will be reprocessed in the next run. If the correction was successful, it will no longer appear as an exception and it will be paid along with the other items. 50

Lesson 2: Creating Payments Through Regular Pay Cycles Topic 6: Running Payment Output Processes Payment Output Processes After the Payment Creation process completes, the Payment Output processes run for all valid payment records created by the Payment Creation process. The purpose of the Payment Output processes is to create the actual payment files in the specified format for each payment for example, files to be sent to banks, or files used to print checks. In general, there is a separate Payment Output process for each output type. 51

Lesson 2: Creating Payments Through Regular Pay Cycles Topic 7: Files Created by Payment Process Files Created by Payment Process As noted earlier, pay cycle processing creates various files that include payment records. The specific numbers and types of files created depend on the specifics of the pay cycle, such as the payment methods used. Here is a summary of the types of files created by the Payment Output processes. Not every individual file is listed because different files may be created at different times or for special purposes: Automated Clearing House (ACH) files: Files are sent to the bank with direct deposit information. Warrant Check files: These are flat files containing warrant details and remittance data. The files are interfaced to the Department of Treasury for printing. Positive Pay files: These are flat files sent to the bank containing all check payments created by the pay cycle for that bank. When the bank receives a request to process the check for payment, they compare the check to the Positive Pay file, preventing fraud. 52

Lesson 2: Creating Payments Through Regular Pay Cycles Topic 8: Running Payment Post Process Payment Post Process The last step in payment processing is to post the payments that were created by the previous pay cycle processes. The payment post process creates accounting entries that are used by the Journal Generator to create GL journals. These entries debit the AP Liability account and credit the cash account. When payments are processed for a withholding vendor, accounting entries may also be created to debit the Withholding Liability account and credit the cash account. You can navigate to this page through the following path: Main Menu > Accounts Payable > Review Accounts Payable Info > Vouchers > Accounting Entries 53

Lesson 2: Creating Payments Through Regular Pay Cycles Lesson Summary Lesson Summary In this lesson, you learned: There are two nightly Treasury pay cycles that process warrant and EDI payments for all agencies. The Payment Processor must review any exceptions that occur in these cycles. You use the Pay Cycle Manager page to initiate and monitor pay cycle processing. This page is available to the Accounts Payable Batch Processor who performs overnight payment processing for the Treasury bank accounts. Pay cycle processing creates various files that include payment records. The specific numbers and types of files created depend on the specifics of the pay cycle, such as the payment methods used. The two major processes of the pay cycle include the Payment Selection process and the Payment Creation process. The last step in payment processing is to post the payments that were created by the previous pay cycle processes. 54

Lesson 3: Creating Special Payments Introduction Lesson Objectives After completing this lesson, you will be able to: Describe the purpose of express payments and manual payments Create an express payment for petty cash Explain how to record a manual payment on the voucher 55

Lesson 3: Creating Special Payments Introduction Lesson Topics In this lesson, you will learn about the following topics: Special Payments Overview Creating express payments for Petty Cash Recording Manual Payments 56

Lesson 3: Creating Special Payments Topic 1: Special Payments Overview Special Payments Overview In the previous lesson, you learned about the steps in the regular pay cycles. In this lesson, you will learn about methods of payment other than the regular pay cycle. These methods include the following: Creating Express Payments for Petty Cash: This task, performed by a Petty Cash Processor, generates payments using Cardinal s express payment feature. Recording Manual Payments: This is a procedure to record payments in Cardinal that were made manually outside of Cardinal. For example, by a manual check given directly to a vendor. 57

Lesson 3: Creating Special Payments Topic 2: Creating Express Payments for Petty Cash Creating Express Payments for Petty Cash A petty cash payment can be issued quickly by creating an express payment. As noted above, a Petty Cash Processor creates the express payment to generate a single payment that allows a check to be printed immediately. 58

Lesson 3: Creating Special Payments Topic 2: Creating Express Payments for Petty Cash Express Payment Page You use the Express Payment page to generate express payments. On this page, enter bank information, vendor information, and select the vouchers to that vendor to be paid. There are several fields that need to be completed to create the express payment. You can navigate to the page through the following path: Main Menu > Accounts Payable > Payments > Express Payments > Create Express Payment The Payor section defaults to the agency, so you do not need to make any changes in this section. In the Payment Detail section, the Date defaults to the current date, and can be changed if needed. 59

Lesson 3: Creating Special Payments Topic 2: Creating Express Payments for Petty Cash In the Bank and Payee Information section: Bank SetID is the SetID that applies to your particular agency (e.g., the agency s bank). Bank and Account specify the account that the payment should be taken from. Enter or select the bank and account numbers to be used for payment in these fields. Pay Method specifies that the vendor should be paid by check. Vendor Set ID is the SetID that applies to your particular agency. Vendor contains the ID of the vendor to which the payment should be made. Enter or select the vendor s ID. Address defaults based on the vendor s default remitting address. If you need to change this to another address, you can do so by modifying the value in this field. 60

Lesson 3: Creating Special Payments Topic 2: Creating Express Payments for Petty Cash In the Select Voucher section: If you want to pay all outstanding vouchers to the vendor, you can click the Add All Vouchers button. If you want to pay specific voucher(s), add information on each in the Select Voucher table. Business Unit contains the Business Unit of the voucher that you want to include in this payment (e.g., your Business Unit). Voucher contains the voucher ID of the voucher you want to include in this payment. Enter or select this value. You can enter additional vouchers to be included in the payment if you wish by clicking the Add New Row button and entering them on additional rows. 61

Lesson 3: Creating Special Payments Topic 2: Creating Express Payments for Petty Cash To complete the process once all vouchers have been selected: Click the Create Payment button. The Express Payment Manager Pay Cycle page appears. (This page lets you control the printing process for the check.) After you click the Process button, the check can be retrieved from the printer. You can navigate to this page through the following path: Main Menu > Accounts Payable > Payments > Express Payments 62

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Lesson 3: Creating Special Payments Topic 3: Recording Manual Payments Manual Payments Sometimes it is necessary to pay a vendor by a manually-written check. Cardinal allows these payments to be accounted for by recording them on the Payments page on the voucher. Manual payments may be recorded either by the Voucher Processor Maintenance or the AP Manager. (Other Voucher Processors do not have access to the necessary fields.) 64

Lesson 3: Creating Special Payments Topic 3: Recording Manual Payments Recording a Manual Payment You can navigate to this page through the following path: Main Menu > Accounts Payable > Voucher > Add/Update > Regular Entry To record a manual payment on the Payments page of the voucher, use these fields: In the Method field in the Payment Options section, enter MAN to indicate a manual payment or WIR to indicate a wire payment. In the Action drop-down list in the Schedule Payment section, select Record a Payment. In the Pay field in the drop-down list, select the appropriate value (for example, Full Amount), and enter a specific value paid if appropriate. Enter the date in the Payment Date field, and a reference (such as the check number) in the Reference field. Click the Save button. Manual payments can only be recorded on budget checked and approved vouchers. 65

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Lesson 3: Creating Special Payments Lesson Summary Lesson Summary In this lesson, you learned: The difference between express payments and manual payments The workflow for creating an express payment for petty cash When a manual payment should be recorded on the voucher and who has access to do so 67

Lesson 4: Managing Payments Introduction Lesson Objectives After completing this lesson, you will be able to: Cancel payments Reconcile petty cash bank statements 68

Lesson 4: Managing Payments Introduction Lesson Topics In this lesson, you will learn about the following topics: Payment management and maintenance tasks Canceling payments Reconciling petty cash bank statements 69

Lesson 4: Managing Payments Topic 1: Payment Management and Maintenance Tasks Payment Management and Maintenance Tasks So far in this course, you have learned about the payment processing tasks performed in routine, day-to-day operation. However, there are other tasks included in payment management that you will perform less frequently, but that are still necessary for smooth operation. 70

Lesson 4: Managing Payments Topic 1: Payment Management and Maintenance Tasks Payment Management Tasks The tasks in this lesson include: Canceling payments, which involves either voiding payments or stopping payments, depending on the payment s current status. Reconciling petty cash bank statements, which uses the Manual Reconciliation process, to reconcile petty cash payments to hard copy bank statements. 71

Lesson 4: Managing Payments Topic 2: Canceling Payments Canceling Payments Overview Payments can be canceled in Cardinal if necessary. There are two statuses that can be requested for canceled payments, which are useful in different cases: Void Payment: This status can be requested for payments that have not been sent to the vendor yet. Voiding a payment automatically reconciles it in Cardinal. Stop Payment: This status is requested when a check has not been processed by the bank. When you request this status, the bank must have already been notified to stop payment. The stop payment process is initiated by Treasury. Treasury will then request a Cardinal user to enter the stop payment in Cardinal. Stopping a payment automatically reconciles it in Cardinal. 72

Lesson 4: Managing Payments Topic 2: Canceling Payments Disposition of Canceled Payments When a payment is canceled by either Void or Stop, Cancel Actions are available to determine what will happen with the payment s associated voucher(s) or other payment items. There are three options: Re-Open Voucher(s)/Re-Issue: This will reopen the vouchers and make them eligible for payment. Re-Open Voucher(s)/Put on Hold: This will reopen the vouchers but put a Payment Hold on them so they can be investigated further. Do Not Reissue/Close Liability: This will close the vouchers, and create accounting entries to reverse the liabilities created by voucher posting. If the payment is to be made later, new voucher(s) would need to be created. 73

Lesson 4: Managing Payments Topic 2: Canceling Payments Undoing Cancellations In addition to the options detailed on the previous pages, you can undo either a Void or a Stop by re-displaying the payment on the Cancel Payment page, and selecting the Undo Cancel status. This will reverse whatever the previous option was. This action can only be taken before the canceled payment is posted. Selecting a Cancel Action is not necessary when selecting Undo Cancel. 74

Lesson 4: Managing Payments Topic 2: Canceling Payments Cancel Payment Page The Cancel Payment page appears here. You can perform the tasks in this topic from this page. You can navigate to this page through the following path: Main Menu > Accounts Payable > Payments > Cancel/Void Payments > Payment Cancellation 75

Lesson 4: Managing Payments Topic 2: Canceling Payments Posting After Cancellation After the cancellation options in the previous topic are performed, the nightly batch processes finalize the action: When a payment is canceled by either a Void or a Stop, the Payment Post process must run to create reversing accounting entries for the payment cancellation transaction. If the Do Not Reissue/Close Liability Cancel Action is selected, the Voucher Post process must run to create reversing accounting entries to reflect the closed vouchers that were affected by the closed payment. Note that once the Payment Post process runs, the Undo Cancel option can no longer be selected. You do not need to run these processes yourself. They are run in batch, not automatically, and you should be aware that the cancellations will not be finalized until the automatic processes are complete. 76

Lesson 4: Managing Payments Topic 3: Reconciling Petty Cash Bank Statements Petty Cash Reconciliation Petty cash payments must be reconciled manually against the paper bank statement. This step should be performed at least monthly, when the bank statement is received. 77

Lesson 4: Managing Payments Topic 3: Reconciling Petty Cash Bank Statements Manual Reconciliation Page To reconcile payments, you use the Manual Reconciliation page. You can navigate to this page through the following path: Main Menu > Banking > Reconcile Statements > Manual Reconciliation 78

Lesson 4: Managing Payments Topic 3: Reconciling Petty Cash Bank Statements The steps for reconciliation are: Enter criteria in the Search Criteria section of the page, including the bank, account, date range, status (Unreconciled) and payment method. Click the Search button. Transactions meeting the search criteria appear in the Systems Transactions section. These are the payment transactions that were created in Cardinal. Review the paper bank statement, and match each transaction on the bank statement to a transaction on the screen. For each matched transaction, select the checkbox in the Select column. After matching all transactions on the statement, click the Reconcile button on the screen. The status of the transactions will be changed to Reconciled. Note: You can unreconcile a previously reconciled transaction if necessary, by searching for reconciled transactions, selecting the transaction, and clicking the Unreconcile button that appears. 79

Lesson 4: Managing Payments Lesson Summary Lesson Objectives In this lesson, you learned: Canceling payments involves either voiding payments or stopping payments, depending on the payment s current status. Reconciling petty cash bank statements uses the Manual Reconciliation process to reconcile petty cash payments to hard copy bank statements. Petty cash payments must be reconciled manually against the paper bank statement and should be performed at least monthly, when the bank statement is received. When a payment is canceled by either a Void or a Stop, the Payment Post process must run to create reversing accounting entries for the payment cancellation transaction. 80

Lesson 5: Payment Reports and Online Inquiries Introduction Lesson Objectives After completing this lesson, you will be able to: Describe the key reports available Describe the key online inquiries available 81

Lesson 5: Payment Reports and Online Inquiries Introduction Lesson Topics In this lesson, you will learn about the following topics: Reports Online Inquiries 82

Lesson 5: Payment Reports and Online Inquiries Topic 1: Reports Payment Reports Payment reports can be run at various intervals. There are numerous payment reports available. Payment reports include: Payment History by Payment Due Date Monitoring Payment Register Including Offsets Note: All users with access to view information in the Customers module will be able to run these reports. 83

Lesson 5: Payment Reports and Online Inquiries Topic 1: Reports Payment History by Payment Report This report lists payments generated by a specified cycle and payment method for a specified date range. You can navigate to this report through the following path: Main Menu > Accounts Payable > Reports > Payments > Payment History by Payment 84

Lesson 5: Payment Reports and Online Inquiries Topic 1: Reports Due Date Monitoring Report This report provides a list of payments due within the specified date range. You can navigate to this report through the following path: Main Menu > Accounts Payable > Reports > Payments > Due Date Monitoring Report 85

Lesson 5: Payment Reports and Online Inquiries Topic 1: Reports Payment Register Including Offsets This report provides information from the payment register including any offset payments. You can navigate to this report through the following path: Main Menu > Accounts Payable > Reports > Payments > Payment Register Incl Offsets 86

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Lesson 5: Payment Reports and Online Inquiries Topic 2: Online Inquiries Online Inquiries Payment online inquiries can be run at various intervals. Payment online inquiries include: Payment Inquiry Document Status Inquiry Note: All users with access to view information in the Accounts Payable module will be able to run these online inquiries. 88

Lesson 5: Payment Reports and Online Inquiries Topic 2: Online Inquiries Payment Inquiry It is used to search for and list payments meeting your search criteria and display basic information about them, as well as to navigate to pages with more detail. You can navigate to this inquiry through the following path: Main Menu > Accounts Payable > Review Accounts Payable Info > Payments > Payment 89

Lesson 5: Payment Reports and Online Inquiries 90

Lesson 5: Payment Reports and Online Inquiries Lesson Summary Lesson Summary In this lesson, you learned how to: Describe the key payment reports Describe the key payment online inquiries 91

Lesson 6: Payment Processing Hands-On Practice Exercises Exercises Please refer to your Activity Guide to complete all the required exercises in Payment Processing. You are encouraged to note all your questions and ask them to the instructor after completing all the exercises. 92

AP314: Payment Processing Course Summary In this course, you learned to: Define key payment processing terms Describe key payment processing concepts Describe the overall payment process and the roles involved in it Explain how payment processing integrates with the other Cardinal modules and external systems Describe the Treasury pay cycles List the steps in a pay cycle Use the Pay Cycle Manager to run payment processing Update the payment selection date in a pay cycle Identify and resolve payment selection exceptions Describe the files created by the payment process Describe the purpose of express payments and manual payments Create an express payment for petty cash Explain how to record a manual payment on the voucher Cancel payments Reconcile petty cash bank statements Describe key reports and online inquiries 93

AP314: Payment Processing Course Evaluation Course Completed Congratulations! You successfully completed the AP314: Payment Processing course. Please use the evaluation link to assess this course. 94